Financial Fraud Detection — MCP Demo

An AI-powered financial fraud detection system built with Model Context Protocol (MCP) and Claude Opus 4.8. Features a dark-themed Gradio dashboard where Claude autonomously calls fraud detection tools via MCP.

Screenshots

Related MCP server: Financial Intelligence MCP Server

What It Does

• Analyzes 30 simulated transactions across 11 accounts

• Detects fraud using two complementary methods:

  • Rule-based pattern matching — velocity abuse, duplicate charges, structuring (smurfing)

  • Statistical anomaly detection — IQR method to surface unusual transaction amounts

• Generates plain-English risk reports suitable for compliance officers

• Exports the full chat session as a formatted PDF

MCP Architecture

Gradio UI (app.py)
    │
    └── MCP Client (stdio)
            │
            └── MCP Server (server.py)
                    ├── Tools (4)
                    │     ├── analyze_transactions
                    │     ├── detect_fraud_patterns
                    │     ├── flag_anomalies
                    │     └── generate_risk_report
                    ├── Resources (1)
                    │     └── transactions://sample
                    └── Prompts (2)
                          ├── fraud_analysis
                          └── stakeholder_report

Claude receives a user question, autonomously decides which tools to call, executes them via MCP, and synthesizes the results into a final answer — no hardcoded logic in the UI layer.

Fraud Scenarios in Sample Data

Tech Stack

• MCP Python SDK — FastMCP server + stdio_client

• Anthropic Python SDK — Claude Opus 4.8 agentic loop

• Gradio — dark dashboard UI

• pandas — transaction analysis and IQR statistics

• fpdf2 — PDF export

Setup

# Clone the repo
git clone https://github.com/archana-gurimitkala/financial-fraud-detection-mcp.git
cd financial-fraud-detection-mcp

# Install dependencies
pip install -r requirements.txt

# Set your Anthropic API key (the app reads it from the environment)
export ANTHROPIC_API_KEY=your_key_here

# Run the Gradio dashboard
python app.py

Open http://localhost:7860 in your browser.

To use the terminal client instead:

python client.py

Sample Questions to Try

• "Give me a full fraud risk report"

• "Which accounts show structuring patterns?"

• "Are there any duplicate transactions?"

• "Which account has the highest velocity abuse?"

• "Summarize the findings for a non-technical executive"

Sample PDF Output

A full exported chat session is included as sample_output.pdf — 8 pages covering the complete fraud analysis, structuring deep dive, velocity abuse breakdown, executive summary, and compliance escalation email.

Course Context

Built to demonstrate concepts from Anthropic's Introduction to MCP course:

• MCP server with Tools, Resources, and Prompts primitives

• stdio transport

• Agentic tool-use loop (Claude decides when and what to call)

• Multi-turn conversation with tool results fed back into context

Built by Archana Gurimitkala · Powered by Claude Opus 4.8 + MCP